Miliband should sack Ed Balls

Labour cannot hope to rebuild its economic credibility while Balls remains shadow chancellor.

In his upcoming reshuffle, Ed Miliband should replace Ed Balls as shadow chancellor.

The Labour party is currently becalmed, and with it Miliband's leadership. In the 12 months since he replaced Gordon Brown, Labour's poll rating has risen one per cent according to the most recent Populous poll, two points according to MORI. Despite riots, war and economic stagnation Labour's leader cannot break beyond the margin of error.

Those wondering whether phone hacking would be a game changer have their answer. It has changed nothing. Despite his deft response to the crisis almost half of Labour supporters cannot picture Ed Miliband as prime minister, and his general approval ratings are plumbing new depths.

But it's not only Ed Miliband the polling furies have chosen to mock. Unemployment is rising. Business confidence declining. Growth estimates are being frantically revised down. Yet unbelievably, the Conservative party has now opened up a ten point lead over Labour on the issue of who has the best economic policies for the country. Even more staggering, their lead has actually increased since March. The worst things get for the economy, the better things seem to get for George Osborne and his party.

There is a simple reason for this paradox. Labour's own economic policy has no clothes. The deficit is the defining issue in British politics. And Tory attempts to brand Labour as deficit deniers have succeeded beyond their wildest dreams. In fact, they have not so much branded shadow ministers as embalmed them, placed them in a glass case and erected a sign "Deficit Denier, official exhibit, 2010 - present".

No one within the Labour party is prepared to even glance at, never mind acknowledge, this elephant in the shadow cabinet room. Nor are they prepared to acknowledge the even larger elephant balancing upon its shoulders. The person who must take responsibility for this parlous state of affairs is Ed Balls.

Labour's shadow chancellor is one of the few political heavyweights on the front bench. But in this specific brief he is an albatross around his party's neck. All the opinion polls indicate the public blames the economic policies of the previous Labour government for the cuts to thier services, along with the hardship they are experiencing, more than the coalition. And Ed Balls is the individual in the shadow cabinet more closely associated with those policies than any other.

Ed Miliband is acutely aware of the toxic legacy of the Brown premiership. Hence his reluctance to even raise the issue of the economy in the wake of the publication of the Darling memoirs. But if he is wary of discussing economics when David Cameron has a copy of Back from the Brinksitting on his lap, how can he hope to make a case whilst he has Ed Balls sitting on his own?

Nor is this just an issue of legacy. Ed Balls was instrumental in rebuilding Labour's economic credibility from the rubble of the 1992 election defeat. He did it by adhering to a simple golden rule. If Labour couldn't ditch their tax and spend image they were unelectable. Prudence became the watch word. Shadow ministers were banned form making any commitments on spending. Gordon Brown, at Ball's urging, pledged to stick to Tory spending limits, and did so even after Labour's landslide 1997 election victory.

Yet as shadow chancellor Ed Balls seems intent on unlearning every rule he once imposed with iron, and occasionally brutal, discipline on others. Labour's policy has not just regressed to tax and spend. It's now cut tax and spend. New expenditure commitments are tossed around like confetti. Tax cuts bounced out with no internal consultation. Prudence has been ditched, replaced by that leather clad vixen, Ms Pump Primer.

What is Ed Balls thinking? It's not just that he's trying to get the voters to embrace an economic agenda they rejected decisively at the 2010 election. They're being asked to endorse economic policies they rejected at the 1979 election. The perception of fiscal profligacy isn't a dead end for the Labour party. It's political hemlock. We know this because Ed Balls told us it was. And he was right.

Labour's economic policy is no longer grounded in political reality, but in a combination of misguided loyalty, stubbornness and Keynesian economic orthodoxy. Ed Balls seems to believe distancing himself from the policies of Gordon Brown would represent a form of betrayal. It would not. It's just the price of doing business for a new party of opposition. He also seems to equate dogma with strength. Yet by sticking unflinchingly to the failed strategy of a failed manifesto he is reinforcing every negative stereotype his enemies have ever sought to construct around him. "The reckless thing to do is plough on regardless", he told Tribune this week. Too right.

Ed Balls is shadow chancellor. His is not chancellor. His prescriptions for the nation's ills may be economically sound. But they are politically unsustainable. Saying 'I was right, you were wrong' to your political opponents, is one thing. Saying it to the voters is a different matter entirely.

He seems unable, or unwilling, to acknowledge this. A destructive combination of loyalty, stubbornness and pride have locked him into a strategy from which he cannot escape. Which is why, at the next shadow cabinet reshuffle, Ed Miliband needs to set Ed Balls and his party free.

Steven Millar
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Labour MP for Midlothian Danielle Rowley: "I get my politics from my mum as well as my dad"

The daughter of Scottish Labour deputy leader Alex Rowley on being the youngest Labour MP.  

Danielle Rowley, the new Labour MP for Midlothian, wants to get one thing straight. “A lot of people automatically assume all of my politics comes from my dad,” the daughter of Scottish Labour’s deputy leader, Alex Rowley, says. “While I am influenced and inspired by him, I grew up with my mum and her parents. I have politics in all sides of my family.”

Both Rowley’s grandfathers were miners and Labour party activists. Her mother was a trade unionist and a case worker for the last Midlothian Labour MP, David Hamilton. “She was a very strong woman, a single parent, a hard worker,” Rowley says. At 27, she is upholding the family tradition by becoming Labour’s youngest MP.

When we meet in Portcullis House, in Westminster, she is dressed soberly in a navy suit jacket and blue print dress. She hopes to inspire young women in her constituency. “I grew up on a council estate,” she says. “I hope it shows them they can do any job they want to.”

Even so, Rowley’s election was a surprise. In 2015, Hamilton resigned and Midlothian went to the Scottish National Party’s Owen Thompson with a 23.4 per cent swing. Rowley, a campaigns officer for the housing charity Shelter, kept her expectations modest. After a nail-biting night, she won with a majority of 885. 

“Obviously I had the aim of winning, but I was not getting my hopes up too much,” Rowley recalls. “I was thinking I could really reduce the SNP majority, that was all. But every day on the doorstep I got more and more hopeful.”

Rowley’s father Alex is a firm supporter of Labour leader Jeremy Corbyn (Scottish Labour leader Kezia Dugdale backed Owen Smith in the 2016 leadership contest), and is seen as being softer on independence than the official party line.

But Rowley says her anti-independence views come from her constituents: “People were fed up of the idea of another referendum.”

In 2014, the independence movement caught the imagination of much of Scotland’s youth – the majority of young voters opted for Yes. So why did Rowley buck the trend? “I am very strong willed,” she says. She spent the referendum working for Gordon Brown, and was there in Kirkcaldy when Yes supporters egged the Labour MP Jim Murphy. “I got a bit of egg on me that day. You can see me [in the photos] in a red raincoat ducking out of the way.”

She believes the same hope which pushed young voters towards independence may now be blowing in the sails of Labour. “I have got a lot of friends who were part of the Yes movement,” she says. “I think there is an assumption they would support the SNP, but actually most of them voted Labour.”

The Corbyn surge, then, is real. “People were fed up, but they needed to be given something to give them hope,” she says. “I think Labour gave them something to offer.

“Whenever we had younger voters on the doorstep, they were excited about the manifesto. Even some of my friends who hadn’t voted were excited about it.”

As for the suggestion – floated by the Labour MSP Neil Findlay – that it should have spent more time talking about Corbyn and less about independence, Rowley demurs. “You couldn’t have just opposing independence, you couldn’t just have the manifesto,” she says. “You had to have both.”

Julia Rampen is the digital news editor of the New Statesman (previously editor of The Staggers, The New Statesman's online rolling politics blog). She has also been deputy editor at Mirror Money Online and has worked as a financial journalist for several trade magazines. 

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